Success Stories
Western Hills Water District - Diablo Canyon

The Diablo Grande financing represents a large tract of previously undeveloped acreage in Stanislaus County, with all the attendant infrastructure demands. There was a long, challenging process of formulating a financing plan, followed by a difficult Bond sale requiring a great amount of effort to educate potential investors and maximization of access to those investors. Furthermore, it is a mixed-use development with a long absorption period and multiple series of Bonds.

The Western Hills Water District was formed in 1992 primarily for the purpose of providing water to Diablo Grande, a 5,070-acre mixed-use development including 2,038 single family and multi-family units. After four years of planning during which the Diablo Grande CFD No. 1 was formed, the CFD issued $21 million Special Tax Bonds in August 2001, proceeds of which were used to acquire water, wastewater, drainage and related improvements to property in the CFD. Series 2002 Bonds in the amount of $6,650,000 were issued in December for continued development. The total bond authorization for the CFD is $57 million. The value-to-lien ratio of the combined Series 2001 and 2002 Bonds was exactly 3:1. Additional bonds may be necessary to complete the public infrastructure for Diablo Grande's build-out, as further demand requires and property values permit.

Diablo Grande is the latest example of the large, raw-land financings in the northern Central Valley area with which the firm has so much experience.

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